Great Leads vs. Not-So-Great Leads: a Definitive Ranking

Which leads are the best leads? We’ve ranked the most effective to the least effective based on our own experience.

Are all leads the same?

No—the quality of each lead will vary depending on where it came from. Qualifying that lead can change how important it is as well. Based on my experience and the experience of the fellow agents in my office, here are five lead sources ranked from most effective to least effective.

The very best lead you can get is someone you know—someone who knows you, likes you, and trusts you.

The second-best lead is a referral from someone who knows, likes, and trusts you. They’re putting their name to your name. Whether they worked with you or know you from the past and know that they can trust you, those clients will be gold.

The third-best lead is a sign call from a listing. Those are buyers driving through neighborhoods and looking to buy a house right now. These buyers are frustrated—homes are moving quickly in our market, and they’re calling agents because they want to get into those homes. These leads will be a ready, willing, and able buyer 90% of the time.  
Make sure you track the conversion of your own leads so you know which ones are your best.
Internet leads come in at a close fourth. These typically have a 2% to 5% conversion ratio, depending on how you follow up with them.

The fifth-best lead is cold calling or outbound prospecting, including FSBOs, expired listings, and circle prospecting around a listing. These are still good leads if you know how to work them and track them.

Make sure you track the conversion of your own leads so you know which ones are your best. If you have amazing phone skills, for instance, and you’re better at converting people off of circle prospecting and open houses than you are at other lead sources, do what works for you.

Sort your leads, follow up with them in the order that’s working for you, and sit down at the end of each quarter and find out what your conversion rate is. That’s what counts.

If you have any questions about tracking or generating leads, don’t hesitate to give me a call or send me an email. I’d be happy to help you.

Recruiting Books That Can Change Your Real Estate Career

Which books are you reading to grow your business and help you grow as a person? I have a few suggestions for you today.

Today I want to go over a few books that have helped me grow my business and grow personally. Check them out or get them on Audible.

I believe that reading is key to success. We do have a library for our real estate agents that we are constantly adding to. Our agents can check these books out at any time.

Now, here are my top picks:

1. Napoleon Hill’s "Think and Grow Rich”

2. Gary Keller’s “The Millionaire Real Estate Agent.” This is a must-read for any real estate agent looking to build their business.

3. Dale Carnegie’s “How to Win Friends and Influence People.” This book will help you communicate, get people to work with you, and negotiate.  
I believe that reading is essential to success.
4. Michael Gerber’s “The E Myth.” This will help you take your career and turn it into a duplicatable business. While Gary Keller’s book is geared towards real estate agents, this book can help any business owner.

5. Brian Tracy’s “Eat That Frog!” This book is all about doing the things that you don’t want to do first and getting them out of the way.

6. Jeb Blount’s “Fanatical Prospecting.” All real estate agents should love prospecting, and this book offers plenty of useful tips to help you.

Again, these are just a handful of the books at the top of my list. If you have read any of these or have any other suggestions, I would love to talk to you. Just give me a call or send me an email!

Start Setting Your 2018 Goals Right Now

Set your goals now so you can start working on them backward and avoid having a slow first quarter.

As a real estate agent, it’s important that you start setting your goals for next year right now so you can start planning them and working on them backward.

We know that a real estate transaction takes 35 to 45 days on average to move forward, and prospecting and getting leads into that conversion funnel extends that process. That will start 90 to 120 days before January 1, so you need to start planning now and not take your foot off the accelerator. Otherwise, you’ll have a really slow first quarter.

You can plan backward by deciding how many transactions you want or what total dollar volume of closed transactions you want. Then break that down into your average price range. Finally, break that down into whatever metric you use to track your business (phone calls, referrals, internet leads, etc.). I have a goal-planning worksheet we use for all the agents in our office, and we have a planning session for our agents as well. We also do off-site visits with my team, and other teams in our office do off-site visits too.

This is a critical time of year, so don’t let it slip by.
This is a critical time of year, so don’t let it slip by. I know you’re thinking about the holiday season, but if you focus now, you can initiate your goals moving forward, enjoy the holidays, and have a wonderful first quarter in 2018.

If you have any questions about planning your goals for next year or would like to know more about the tools we use, don’t hesitate to reach out to me. We’d love to help you.

What's the Key to a Successful Open House?

Today, I want to share some strategies on how to hold a successful open house.

A successful open house starts with promotion. Promoting your open house will help you get more traffic through the door, and this can be achieved by advertising on Zillow,, or a number of other platforms.

You can also promote your open house on social media outlets like Facebook, Twitter, and Snapchat. This is going to generate a lot of interest among millennials.

Also, don’t forget to put up signs. Signs are still the No. 1 way people find open houses, so be sure to make use of them.

In fact, I encourage my agents to put up 20 to 50 signs. This may sound like a lot, but it actually works. The more signs you put up, the more people you’ll be driving to the home.

Another good way to promote your open house is by knocking on the neighbors’ doors. Do this at about 50 properties a couple of days prior to your open house and give the neighbors a personal invite.

A successful open house starts with promotion.
Once you’ve done the promotion, there are still some things left to do. When the day of the open house arrives, make sure you have a table up front with a sign-in sheet available.
A good way to get people to sign is by having a pen ready and also by providing an incentive. On my team, we like to offer gift cards to places like Panera or Jamba Juice. Sometimes, you can get a lender to help you co-sponsor these. If you can get your lender to come out to the open house, they can also help people get pre-qualified for your property.

Another strategy to keep in mind is to use a laptop or iPad to feature other properties on the market. This may sound counterintuitive, but it’s important to remember that 92% of buyers who walk through an open house are not going to make an offer on that particular home.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Secret to Organizing Your Database

Today I’m going to be going over my top tips for organizing your database. I’ll also be explaining what a CRM is and why it’s important to your business.

Today I want to explain what a CRM is, and also go over how to organize your database.

So, what is a CRM? CRMs are actually systems which allow you to reach out to your database in an organized manner. Some of the best systems out there include Top Producer and Referral Maker. However, you can also use a program as simple as Outlook.

The important thing is to have a system in place and you stick with it. When you put data such as birthdays, addresses, and other important information into your system, it will greatly benefit the flow of your business.

CRMs will help you log calls, give you reminders on when to follow up, and will generally make it easier for you to manage your database.

The important thing is to have a system in place and you stick with it.
My team and I actually have our CRM provided to us by RE/MAX. When you join RE/MAX, this CRM is included.

A common question that arises when discussing CRMs is how to segment your database. Personally, I recommend you divide your database into A’s, B’s, C’s, and D’s.
The A segment consists of those who have already referred business to you. B’s are clients who would refer you if they knew how. C’s are new prospects and D’s are those who you should likely delete out of your system.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.